Council loses millions on stock market

A SCOTTISH council confirmed it would have to save £15m a year indefinitely after it lost millions on the stock market. Shetland Islands Council blamed the global financial downturn which was exacerbated by the events of 11 September.

Public sector union Unison has been reported as saying the council could be forced to axe 500 jobs to help meet the £15m loss to its budget. But council chiefs have stressed there will be no compulsory redundancies and it will find the money through natural wastage.

Morgan Goodlad, the chief executive, said the figure of 500 jobs was 'inaccurate' but refused to comment on the precise number of council jobs affected.

Asked for the true figure, he said: 'I don't know. We took £6m out last year without any job losses and we have the full-time equivalent of 2,100 employee members, compared with, I think, 1,400 in Orkney Islands Council. The 500 jobs seem to be magicked out of the air by Unison about three months ago. I'm not going to be drawn on numbers of jobs at all, but I know it's a big issue with Shetland because the council is by far the largest employer. I wonder whether we cannot deliver equal statutory service levels with less employees. Any knee-jerk reaction by the council will soon have a major impact on the overall economy.'

Goodlad said the council had set itself a target ceiling of £15m and had saved £6m on over the current financial year. He said he was currently involved in looking for staff to be shed through natural wastage and admitted the council would have to save the £15m 'until further notice'.

He added: 'That is what I have been doing - looking for natural wastage - and we're proceeding with it.'

Commenting on the number of jobs affected he added: 'It's certainly not 500 and certainly not enough to save £15m.'